BFC, K&R JV Buy $60M Brooklyn, Bronx Multifamily Portfolio
Preservation Development Partners—a JV of Donald Capoccia’s BFC Partners and Francine Kellman and Brian Raddock’s K&R Preservation—has purchased an eight-building portfolio from Josh Gotlib’s Black Spruce Management for $60M.
Black Spruce bought the properties—five Bronx and three Brooklyn buildings totaling 300k SF and 324 fully occupied Section 8 apartments—last April for $43M, The Real Deal reports. The purchase was part of a 42-building multifamily portfolio sold by Normandy Real Estate Partners and Westbrook Partners, with Josh’s firm as the dominant buyer.
Black Spruce pocketed $17M in the deal, which was brokered by Rosewood Realty Group’s Aaron Jungreis and was financed with tax-exempt bonds and credit enhanced by Freddie Mac’s low-income housing tax credit rehab program.
The Bronx and Brooklyn buildings sold for $38M and $22M, respectively. Addresses included 286-290 East 91st St (top left), 185 East 92nd St (top right), 972 Leggett Ave (bottom left) and 60-68 West 162nd St (bottom right).
Black Spruce has recently turned its eye to Manhattan, purchasing 14 Hell’s Kitchen walk-ups for $110M.
The JV—which has bought and renovated 2,400 low-income apartments across NY and NJ—is planning a $12M renovation expected to complete next summer. Francine says the work will be done with the tenants in place.
The Section 8 contracts will also be renewed to prevent conversion to market-rate housing for the foreseeable future. [TRD]